Possibly the biggest reason why people are afraid of real estate investment is bad tenants. You can find awful stories about how tenants ruined the inside of a home, stopped paying rent, sublet the home to bad roommates or multiple other family members, got the owner numerous HOA fines, and more. Below are a few things you can do to avoid bad tenants in your Henderson rental property.
One of the easiest ways to avoid bad tenants in your Henderson rental property is to hire a Henderson property manager who will take care of everything for you! Enlist the help of an expert who has rented out hundreds of homes to good clients. In the past they may have even rented out to bad tenants and now know how to avoid repeating that mistake. Henderson property managers should also have means of providing background checks on all rental applications to make sure that they pay their bills on time, do not have any criminal background, and have not been evicted from other rental homes and apartments. Property managers screen applications on a daily basis and a good Henderson property manager will often be able to tell when an application seems sketchy.
A tactic for how to avoid bad tenants in your Henderson rental property is to require a sizeable move-in deposit. Most bad tenants know they are bad tenants. Having a large move in deposit will scare many bad tenants away as they will be afraid of losing that money. This will also protect you so that if they are bad tenants, you’ll have some funds to undo whatever they’ve done to the property or whatever rent you might have missed. There is a balance to this, however, as you do not want a deposit so high that no tenants will be able to afford it.
One way to avoid bad tenants in your Henderson rental property is to conduct rental verifications. Before you approve a rental application, contact the last one or two landlords. Many will require you to have a form signed by the applicant giving permission for past landlords to discuss with you their rental history. Some of the questions you will want to ask the previous landlords is how many times they paid rent late? How did they treat the home or apartment they were living in? Were there any complaints about them? Did they give notice to move out? These questions will help you determine if your applicants are good tenants.
If you have rented to bad tenants, get them out as quickly as you can. Be very on top of giving them notices when they don’t pay their rent on time, search your lease agreement with them and keep track of what you can and can’t evict them for. This is when a well-worded lease that you’ve gotten from a real estate professional or an attorney will really come into play, so take great care with your lease agreements. Another thing you can do to get them out is conduct inspections as often as you can per your lease agreement with them. If you are acting quickly and staying on top of them, they may want to break the lease early or you may be able to evict them. This process can cost you some money, but it will be better than not receiving rent, having your investment destroyed by bad tenants, and large amounts of time worrying about the bad tenants. If you find yourself with bad tenants, it is not too late to hire a property manager. They can help you get a bad tenant out and a good tenant in, and sometimes you can just hire a property manager to to an eviction or just find you good tenants.
Bad tenants are not always avoidable. People can often put on a good show and have great credit but have a lifestyle that disqualifies them from being a good tenant. Having a property manager on your side can help you get rid of these tenants quickly. If you are interested in hiring a Henderson property manager, contact Nevada Desert Realty’s property managers at 702-509-1446 for a free consultation in person or over the phone!